I think what is important about this WSJ article is 1) that you could not have a better or more experienced man as the new CEO and 2) When comparing VRX to Perrigo's Sales and EDITDA and valuation, it is obvious that VRX should be trading at more than 3X the Market Cap of Perrigo or above $60 per share right now, and it is just a matter of time until VRX is above $60.
At Valeant, Mr. Papa said, he brings 34 years of experience in the pharmaceutical industry, including in R&D and the launch of two billion-dollar-selling drugs, inspired by the successful treatment of his childhood bout with migratory arthritis.
“I’ve got debt to pay off—I know that. I know I’ve got to grow sales. But the real way you have success in the pharmaceutical industry is you make a difference in patients’ lives,” he said.
Valeant was one of Wall Street’s highest-flying stocks. Under CEO Michael Pearson, it expanded sales through aggressive deal making and dramatic price hikes, while relocating to Canada to lower its tax rate and limiting spending on research.
But all of those deals saddled Valeant with more than $30 billion in debt, prompting Wall Street to rethink the virtues of unfettered acquisitions. Meanwhile, Valeant’s price increases have been the subject of congressional hearings and government investigations.
Dublin-based Perrigo is a leading seller of cough and cold remedies that stores like Kroger, Walgreen’s and Wal-Mart sell under their own labels. It also sells generic prescription drugs.
Generic drug prices rose significantly in 2013 and 2014, said Richard Evans, an analyst at SSR Health LLC, and Perrigo upped the list prices of its generics more than many rivals.
The list prices of Perrigo’s drugs rose 52% over the past four years, compared with an average 18% across manufacturers, according to an SSR analysis of generic drugs not in shortage.
Desonide cream cost 85 cents a gram until Perrigo increased the price twice in 2013, lifting the list price to $5.35, according to average wholesale price data from Connecture, a provider of price-comparison software for health care. Desonide treats psoriasis and other skin conditions.
Perrigo raised the list price of lice treatment permethrin in 2011, 2013 and last January. It is now priced at $3.09 a gram, up from 49 cents, according to Connecture.
Perrigo increased list pric
They don't have to pay off debt. It can be refinanced. This takes place at hundreds of companies every year.
This is only an advisory vote - it has no real effect. Even if they vote for Britain to exit, the lawmakers will just modify the conditions of staying and nothing will change (other than accepting refugees). This is much ado about nothing.. I expect market to rally once reality hits.
This is absolutely wrong thing to do. The stock is worth at least $45 right now. They are in talks right now. What happens if a buyout offer comes this week or next? You will make pennies on the dollar! Just hold your position and it will go to $45 or more, either very quickly or over the next 6 months, meaning you will make $23 a share.(double your money or more from here) Why would you want to be an idiot and only make $7.35? I've had 2 stocks that popped in the last 2 weeks and one went up over 70% and the other over 112%. Both of them had almost the exact same comments you see on this board (BK, debtors foreclosing, no pricing power, etc.). The news that pushed them up was minimal at best. You people forget that current stock price reflects only the mindset of the last idiots that sold - it has nothing to do with reality or the value of the company.
Ha, Ha, LOL. I'm sure he bought all those options and rolled them out so he could do a quick bankruptcy and just lose all that money! LOL The idiocy of you shorts is just amazing.
Bill Miller will make lots of money with VRX. This stock is worth $45 right here, right now. The short sellers that beat it down must cover and they will drive it back up and buyers will come back in. Just because crooks like Cramer and Motley Fool have attacked it means nothing, other than that the price is currently depressed. It will not last at this price.
FDA approved Chantix and it had black box suicide warning label and hit annual sales of $843 million. Its sales have only fallen because of studies finding it was no better than nicotine patches.
They have $60-70 Billion in assets they bought (plus origional value of company). In a firesale they'd get $45 billion. Subtract all $31 billion = $14 billion with no debt. That's twice the market cap and accounts for no cash flow! It's a no-brainer to go long. You have no brain if you are short!
Motley fool article is written by a total idiot - he has little to no figures and assumes it will trade at less than 1 times revenues after most debt gone. Most pharmas trade at 4-5 times revenues (AGN is at 5.7 times revenues). Using his sales and EBITDA figures and comparing to other companies, the share price should be above $60 - but he somehow concluded it should be in teens! It was obvious hit piece.
Capitulation was on June 7, when it traded 103,904,000 shares and hit low at $22.52. This is just excess piling on by Cramer fools and Motley fools. They will get burned here. I've seen this movie many times before.
I believe they will make another takeover offer at this beaten down stock price. It was rumored that the April offer was at $45 a share.
Shares in Takeda Pharmaceutical and Valeant Pharmaceuticals rose amid chatter that the Japanese drugmaker and TPG, the private equity firm, had made a takeover offer for its besieged Canadian peer.
Valeant this spring rejected an approach from its Japanese rival and TPG, according to the Wall Street Journal, before the recent instalment of Joseph Papa as chief executive officer.